New Investor Looking at large property for the first time
I'm a new investor partnering with an experienced investor to purchase a mutli-unit buy and hold. The experienced investor has owned upwards of 50+ properties at any given time but has largely retired. While being a good mentor he largely just want to sit back, put money out, and have it return at this point in his life.
I'm tasked with going and looking at the potential property. While I've done many walk-troughs before on Quad/Tri/Duplexes as well as SFHs I've never done a walk through on a 10 unit apartment building before.
What do I need to look out when doing my inspection of the building. Of course we will hire an inspector if we go to contract, but what things should I be looking out for to save our partnership the time and effort of a contract gone south should problems arise. The property is supposed to be turnkey.
In short:
What should I be looking for?
What should I be watching out for?
What makes a property a solid investment, besides the financial?
What should make me turn and run for the hills?
What questions should I be asking the realtor/seller?
What other advice do you have?
This is my first post to BP, I hope I don't come across as too much of a newbie, but in I've listened to most of the podcasts and Josh always seems to say their are no stupid questions. I hope he's right!
Thanks everyone!
#2 New Member Introductions Contributor
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- Rockland, MA
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#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
Start with a solid financial analysis we us a CAP 12%+, DCR 1.6%+ and c/c 12%+
You will inspect each unit noting any work to be done. Your inspector will inspect the major systems and a sampling of the units.
Remember the LOI signifies the beginning of the dance not the end.
Paul